Editorial illustration for Intel in Talks to Acquire SambaNova at Reduced Valuation from 2021 Peak
Intel Eyes SambaNova Acquisition in Strategic AI Chip Move
Intel moves to acquire SambaNova at valuation below 2021 USD 5 billion peak
In the high-stakes world of AI chip technology, Intel is eyeing a strategic acquisition that could reshape its competitive landscape. The semiconductor giant is reportedly in advanced talks to purchase SambaNova Systems, a specialized AI hardware startup, at a valuation significantly lower than its previous peak.
The potential deal highlights the volatile market for AI infrastructure companies. What was once a $5 billion darling in 2021 might now be within Intel's reach at a more modest price point.
Interestingly, the connection between Intel and SambaNova runs deeper than a typical acquisition target. Intel CEO Lip-Bu Tan currently serves as SambaNova's chairman, adding an intriguing layer of insider perspective to the potential transaction.
With AI chip investments becoming increasingly critical, this move could signal Intel's aggressive strategy to bolster its position in an intensely competitive technology segment. The potential purchase suggests a calculated approach to expanding AI capabilities without the astronomical price tag of previous years.
The report noted that SambaNova could sell for less than the $5 billion valuation it had reached in April 2021. Notably, Intel CEO Lip-Bu Tan is currently the chairman of SambaNova Systems. Intel Capital, which Intel is in the process of spinning off into a standalone fund, has also invested in SambaNova Systems.
Another investor in SambaNova, Japan's SoftBank Group, made a major investment in Intel earlier this year. Intel had not yet responded to requests for comment at the time of publication. SambaNova Systems was founded in 2017 in Palo Alto, California by Kunle Olukotun, Rodrigo Liang, and Christopher Ré.
Olukotun and Ré are Stanford professors; Liang previously worked as an executive at Oracle. SambaNova Systems makes an AI chip platform for inference computing, a process where large language models make predictions from vast amounts of data. As of early 2025, the startup had raised a total of $1.14 billion in funding, according to PitchBook data.
In 2020 it raised $250 million from asset manager BlackRock, Intel Capital, the venture firm GV, and other investors, bringing the startup's valuation to $2.5 billion. The following year, SambaNova was valued at $5 billion after a massive funding round of $676 million, led by SoftBank's Vision Fund 2.
The potential acquisition of SambaNova by Intel reveals a strategic dance between two tech players, shaped by existing relationships and market shifts. Intel's CEO already serves as SambaNova's chairman, suggesting a deep familiarity that could smooth any potential deal.
The negotiations come at an interesting moment, with SambaNova's valuation sliding from its 2021 peak of $5 billion. This reduced price might make the acquisition more palatable for Intel, which has been exploring ways to strengthen its AI capabilities.
Interestingly, the deal's backdrop includes complex investor connections. Intel Capital has previously invested in SambaNova, while SoftBank - another SambaNova investor - recently made a significant investment in Intel itself. These interconnected relationships could potentially influence the acquisition discussions.
For now, the talks remain unconfirmed, with Intel not yet responding to comment requests. The tech world will be watching closely to see how this potential merger might reshape the competitive AI landscape.
Still, the most intriguing element might be the existing leadership overlap - a detail that suggests this isn't just another standard tech acquisition, but something more nuanced.
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Common Questions Answered
What is the current valuation of SambaNova compared to its 2021 peak?
SambaNova's valuation has significantly dropped from its $5 billion peak in April 2021. The potential acquisition by Intel is expected to be at a much lower valuation, reflecting the volatile market for AI infrastructure companies.
How are Intel and SambaNova currently connected prior to the potential acquisition?
Intel CEO Lip-Bu Tan currently serves as the chairman of SambaNova Systems. Additionally, Intel Capital has previously invested in SambaNova, creating existing strategic ties between the two companies.
What makes SambaNova an attractive acquisition target for Intel?
SambaNova is a specialized AI hardware startup that could help Intel strengthen its position in the competitive AI chip technology market. The reduced valuation makes the potential acquisition more financially attractive for Intel's strategic expansion.